SOURCE: AAA Energy Inc.

October 16, 2007 06:00 ET

AAA Energy Inc. Adviser Secures Additional China Moly Prospects

RENO, NV--(Marketwire - October 16, 2007) - AAA Energy Inc. (OTCBB: AAAE) is pleased to announce that further to its news release dated October 10, 2007, Mr. Siu Man Kwan, the Company's adviser and authorized agent in China, has signed a second letter of intent covering 2 additional molybdenum prospects located in the Henan Province, north-central China.

Through his controlled Chinese entity, Nanjing Orient Railway Communications Equipment Co. Ltd., Mr. Kwan has executed a Letter of Investment Intent with Henan Luanchuan Fang Yuen Mining Enterprises, Ltd., a local government controlled investment enterprise. Under the terms of the agreement, the Company can invest up to RMB20 million to acquire up to an 80% equity interest in each of 2 molybdenum production-exploration prospects, the Luanchuan Shi Bao Mine ("Shi Bao") and the Huang Jia Ping Molybdenum Gold Mine ("Huang Jia Ping").

Shi Bao, located in Luanchuan, one of the largest molybdenum production districts in China, has current small-scale moly production capacity of 150 tpd. The mine area comprises 0.1878 square kilometers with reported molybdenum assay grades at the mine ranging from 0.08% to 0.2% Mo.

Huang Jia Ping comprises a brownfields molybdenum exploration concession area of 21.84 square kilometers located in Luonan County. Reports of prior exploration work, by the local Chinese exploration bureau, include bulk sample grades at Huang Jia Ping in excess of 1% Mo and 16 grams/ton Au.

The moly prospects described in this release and in the Company's news release dated October 10, 2007 are located in the Luanchuan mining district, which is approximately 200 kilometers south-west of Henan Province's capital city, Zhengzhou. The terrain around the mine is generally rugged and the topography ranges from approximately 1,100 to 1,600 meters above sea level.

The Luanchuan mining district is part of the giant Qinling mineral belt, hosting one of the world's largest primary molybdenum orebodies. This orebody is being mined at the Sandaozhuang Mine, operated by Hong Kong-listed China Molybdenum. The East Qinling molybdenum belt is located in the south edge of the north China Craton, where it collided with the Yangtze Craton creating a favorable environment for a series of giant molybdenum deposits. These deposits contain the largest reserves of molybdenum in China. Most of the molybdenum mineralization is of the porphyry type with associated skarn deposits hosted in the Yan Shan granite (Mesozoic) in the Qinling orogenic belt. This mineralization event has been called the Yanshanian Metallogenic Explosion.

The molybdenum resources in Henan constitute approximately 40% of the nation's total molybdenum resources. The Luoyang Luanchuan molybdenum reserve area, where these moly prospects are located, is considered to host the best mineral reserves in the area in terms of grade, extractability and geological settings.

China is the third-largest producer of molybdenum in the world, a specialty metal used for hardening steel. The white metal is valued for its anti-corrosive and strengthening properties and makes up two percent to ten percent of stainless steel. In 2004, China produced approximately 31,000 tonnes of molybdenum as compared with 30,600 tonnes in 2003. The country's identified reserves of approximately 8.55 Mt ranks second worldwide reserves. Three of the six largest producing molybdenum mines in the world are located in China: Luanchuan in the Henan Province; Daheishan in the Jilin Province (1.1 Mt); and Jinduicheng in the Shaanxi Province (970,000 t).

Further Information

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About AAA Energy Inc.

AAA Energy Inc. is a publicly traded mineral and natural resource exploration company with its head office located in Reno, Nevada. AAA Energy Inc. aims to secure and develop a portfolio of high quality resource properties globally and in under-explored resource horizons. AAA Energy Inc. trades on the NASDAQ OTC BB under the ticker symbol: AAAE.

On behalf of the Board

Dr. Earl Abbott, President

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that AAA Energy Inc. can identify and successfully negotiate leases for natural and mineral resource properties in China and elsewhere, and that the Company can participate in the exploration of these resource properties. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.

Contact Information

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    AAA Energy Inc.
    Investor Relations
    1-516-659-6677